Kalytera Announces Change to Scope of Services under Payments Agreements with Salzman Group and Next Share Issuance
January 31 2019 - 2:23PM
Kalytera Therapeutics, Inc. (TSX VENTURE: KALY and OTCQB: KALTF)
(the "
Company" or "
Kalytera")
today announced that the Company has elected to issue 13,085,677
common shares of the Company (“
Common Shares”) to
The Salzman Group in payment of invoices issued under the payments
agreement announced on June 15, 2018 (the “
June 2018
Agreement”). Under the June 2018 Agreement, The
Salzman Group and its affiliates provide general and administrative
support services, study set-up work for planned studies in
connection with use of CBD in treatment of GVHD, and research and
development work in connection with Kalytera’s exclusive license of
cannabidiol-naproxen conjugates for treatment of pain.
The June 2018 Agreement was amended today to
change the scope of the services provided thereunder.
Additional services to be provided relate to a proposed Phase I
clinical study to evaluate any effect of food on the
pharmacokinetics of CBD, a proposed Phase I clinical study to
investigate any drug-drug interactions with CBD, studies in respect
of the use of CBD in prevention of GVHD, a proposed in-vitro
mechanism of action study of CBD, and a proposed pre-clinical study
to evaluate the efficacy of CBD in protecting against intestinal
mucosal injury. This amendment of the June 2018 Agreement and
the issuance of shares in payment of invoices for these additional
services is subject to any TSXV approval required in connection
with the amendment.
There has been no increase in the maximum dollar
amount of services eligible for payment in shares under the June
2018 Agreement. As previously announced, the term of the June
2018 Agreement will expire on March 1, 2019.
The invoiced amounts to be paid in Common Shares
to The Salzman Group total to the amount of US$714,197 (or
C$942,168.68 based on the daily average exchange rate for January
30, 2019 published by the Bank of Canada). The number of
Common Shares to be issued is based on a deemed issue price of
C$0.072 per Common Share, being 90% of the closing price of the
Common Shares on the TSXV on January 30, 2019, the trading day
prior to the Company’s election to pay the invoiced amounts in
Common Shares. The Common Shares are expected to be issued to
The Salzman Group on or about February 1, 2019 subject to any
required TSXV approval.
About Kalytera TherapeuticsKalytera
Therapeutics, Inc. ("Kalytera") is pioneering the
development of a next generation of cannabinoid therapeutics.
Through its proven leadership, drug development expertise, and
intellectual property portfolio, Kalytera seeks to establish a
leading position in the development of novel cannabinoid medicines
for a range of important unmet medical needs, with an initial focus
on graft versus host disease (“GVHD”).
Kalytera also intends to develop a new class of
proprietary cannabidiol ("CBD") therapeutics. CBD
is a versatile compound that has shown activity against a number of
pharmacological targets. However, there are limitations associated
with natural CBD, including its poor oral bioavailability. Kalytera
will seek to develop innovative CBD formulations and prodrugs in an
effort to overcome these limitations, and to target specific
disease sites within the body. Kalytera intends to file composition
of matter and method of use patents covering its novel inventions,
with the goal of limiting future competition.
- Website Home: https://kalytera.co/
- News and Insights: https://kalytera.co/news/
- Investors: https://kalytera.co/investors/
Cautionary StatementsNeither TSX Venture
Exchange nor its Regulation Services Provider (as that term is
defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
This press release may contain certain
forward-looking information and statements ("forward-looking
information") within the meaning of applicable Canadian securities
legislation, that are not based on historical fact, including
without limitation in respect of its product candidate pipeline,
planned clinical trials, regulatory approval prospects,
intellectual property objectives and other statements containing
the words "believes", "anticipates", "plans", "intends", "will",
"should", "expects", "continue", "estimate", "forecasts" and other
similar expressions. Readers are cautioned to not place undue
reliance on forward-looking information. Actual results and
developments may differ materially from those contemplated by these
statements depending on, among other things, the risk that future
clinical studies may not proceed as expected or may produce
unfavourable results and the risk that required regulatory
approvals may not be obtained. Kalytera undertakes no obligation to
comment on analyses, expectations or statements made by
third-parties, its securities, or financial or operating results
(as applicable). Although Kalytera believes that the expectations
reflected in forward-looking information in this press release are
reasonable, such forward-looking information has been based on
expectations, factors and assumptions concerning future events
which may prove to be inaccurate and are subject to numerous risks
and uncertainties, certain of which are beyond Kalytera's control.
The forward-looking information contained in this press release are
expressly qualified by this cautionary statement and are made as of
the date hereof. Kalytera disclaims any intention and has no
obligation or responsibility, except as required by law, to update
or revise any forward-looking information, whether as a result of
new information, future events or otherwise.
Contact Information
- Robert Farrell President, CEO (888) 861-2008
info@kalytera.co
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